$1.8b for regional health facilities

Health and Hospitals Fund grants worth $1.33 billion over five years will be handed out.

ABC News

The Federal Government's major spend on health services will see $1.8 billion committed to regional Australia.

A total of 63 Health and Hospitals Fund grants worth $1.33 billion over five years will be handed out, along with the provision of $475 million for a second dedicated round that will open for applications later this year.

Treasurer Wayne Swan says new funding of $717 million over five years will expand access to diagnostic imaging services and make new medicines and immunisations more affordable.

He says an extra $53 million will provide better access to public dental services, particularly for people on low incomes, and there will be an additional $526 million for Indigenous education, employment and health.

The spending comes on top of the extra $1.5 billion assigned for mental health services, taking the Government's total package of measures in the sector to $2.2 billion.

The new expenditure comes at the expense of modest savings across the Health and Ageing portfolio.

Among the savings is $211m over five years by reassessing the balance between community and residential aged care, $53.5m by streamlining health program delivery, $122m by better targeting of measures under the Hearing Service Program, and $419m over the forward estimates by reforming pathology services through the Medicare Benefits Schedule.